Summary |
Economic recession is bound to happen with expected regular intervals. US, the super power nation of the world, has experienced economic recession for the 10th time. But the economic recession had to have its eclipse not only on the giant of the world but also on other countries. Lehman brother, a big brother of banking system in the world, is responsible for the global financial meltdown as it had to extend sub prime lending for the housing sector. Hundreds of banks in US have remained closed while the liquidity position of the banks in other countries also suffered. As a result, GDP of the country’s is reduced drastically, besides decelerating the living standard.
In an endeavor to revive the economy, stimulus packages have been initiated by the US and other countries. These packages make an attempt to instill confidence in the minds of the investor, besides promoting standard of living and GDP.
|
